Acquisition to help company deliver integrated project management services globally
Canadian construction and engineering giant SNC-Lavalin Group has announced that it is acquiring UK-based design, engineering and project management consultancy WS Atkins for $3.14bn.
According to SNC-Lavalin, the deal has been approved by the boards of directors of both companies. Under the agreement of the cash acquisition, SNC-Lavalin will acquire the entire issued and to-be-issued share capital of Atkins for $26.88 per share in cash.
Atkins, whose roots go back to 1938, has 18,000 employees and reported revenues of approximately $2.5bn in 2016. Apart from the UK and Scandinavia, it is also active in the US, Middle East and Asia.
“We are very pleased to announce this proposed acquisition that is fully aligned with our growth strategy, creating a global fully integrated professional services and project management company – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance,” said Neil Bruce, president and CEO, SNC-Lavalin.
He added that combining the two “highly complementary businesses” would enable the depth and breadth of services to be increased and position the merged entity as a premier partner to public and private sector clients.
“It also creates new revenue growth opportunities in key geographies by positioning us to capitalise on increased cross-selling and the opportunity to win and deliver major projects in new regions,” Bruce added.